Harless Tax Blog
Tax season can be one of the most stressful times of the year for business owners. However, it's necessary if you want to avoid audits or getting penalized by the IRS.
But, tax season is also beneficial for business owners since it can help you deduct certain expenses, which means that you can reduce your overall tax burden.
To make sure that you don't leave any money on the table, here are the best deductions for small businesses to write-off this upcoming tax season. See More
As a follow up to our last blog post, Playing Defense as Stock Prices Soar, here are some additional strategies to consider.
All of these strategies have advantages and drawbacks, so you should proceed with caution. Very generally, buy and hold strategies might appeal to workers who are some years from retirement. A market drop may turn out to be a buying opportunity, especially for those who are investing periodically through contributions to 401(k) and similar plans. On the other hand, trimming stocks might be prudent for people in or near retirement. Investment opportunities at low stock prices may be reduced, and a market skid can be particularly dangerous for retirees who are tapping their portfolio for spending money. See More
Partnerships. File a 2016 calendar-year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., or a substitute Schedule K-1. If you want an automatic six-month extension of time to file the return and provide Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then file Form 1065 by September 15.
S corporations. File a 2016 calendar-year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc., or a substitute Schedule K-1. If you want an automatic six-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe. See More
Business owners who want to sponsor a retirement plan for employees (including owner-employees) have many options from which to choose. Knowing the basics can help entrepreneurs make an astute decision.
One choice is a “profit-sharing” plan. Despite its name, your company needn’t tabulate its earnings every year and divide that amount among its workers. Instead, the term indicates a plan in which contributions to employees’ retirement accounts are made by the employer. Therefore, a profit-sharing plan may help your company to attract, motivate, and retain valued employees. These plans are flexible, so employers can contribute more in good years and less (or nothing at all) when business is slow. See More
About 84% of large employers will offer high-deductible health plans in 2017. Indeed, 35% of large employers will offer only high-deductible plans to their workforce. Some workers’ deductibles will be offset by employers’ contributions to health savings accounts: tax-free funds that workers can use to pay for out-of-pocket health care costs.
[FEB 1] IRA REMINDER: For 2016 and 2017, total contributions to traditional and Roth IRAs cannot be more than $5,500, or $6,500 for those age 50 or older. See More
All businesses. Give annual information statements (Forms 1099) to recipients of certain payments you made during 2016. Payments that are covered include: (1) compensation for workers who are not considered employees, (2) dividends and other corporate distributions, (3) interest, (4) rents, (5) royalties, (6) profit-sharing distributions, (7) retirement plan distributions, (8) original issue discounts, (9) prizes and awards, (10) medical and health care payments, (11) debt cancellations (treated as payment to debtor), (12) payments of Indian gaming profits to tribal members, and (13) cash payments over $10,000. There are different forms for different types of payments. See More
From BloombergMarkets. Read Original Article
U.S. employers are watching the clock.
With federal rules expanding paid overtime eligibility set to take effect next month, business leaders are making moves to contain future costs, according to a New York Federal Reserve Bank survey.
The new regulation, finalized in May by the Labor Department and scheduled to come into force on Dec. 1, requires employers to pay time-and-a-half to salaried employees earning up to nearly $47,500 annually — about double the current threshold of almost $24,000 — after they work more than 40 hours per week. See More
WASHINGTON —The Internal Revenue Service on July 14, 2015 encouraged eligible small businesses that did not file certain retirement plan returns to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance. See More
Recent tornadoes and massive flooding in the western United States have caused not only major property damage to personal possessions but to many businesses as well. Additionally, June 1st marks the beginning of Hurricane season; therefore, having a plan for business and personal data and record access is an important part of being prepared. Below are some simple steps that can help taxpayers and businesses protect financial and tax records in case of disasters. The IRS also offers a video on their website www.irs.gov “Preparing for a Disaster” See More